The buildings, located along Route 422 adjacent to the Valley Forge National Historic Park, were built in 1978 and 1980, according to Bill Glazer, Keystone's president. He tells GlobeSt.com the complex is now 60% leased.
"The rent rate at the time of the sale was $22.50 per sf, but we're going to increase rates after we complete upgrades," Glazer says. He declined to disclose the amount Keystone is investing, but says, "it will be many millions of dollars to completely reposition the façade and overall site."
These renovations will come on top of upgrades by Westbrook that included new lobbies, restrooms, HVAC replacement and some cosmetic enhancements. Among the current tenants are Oracle Corp., Reed Elsevier and Goddard Systems.
Lead brokers Robert Fahey and Lizann McGowan of the Philadelphia office of CB Richard Ellis, along with Michael Hines, Michael Blunt and Douglas Joseph of the CBRE investment property group, represented Westbrook in the sale. Keystone spoke for itself.
In addition to new construction, Keystone specializes in redeveloping under performing assets. For example, its is spending more than $6 million to upgrade Devon Square II, a two-building, 140,000-sf complex in Wayne. As a result, it has just inked a lease for 11,558 sf with Surgery Center of Bryn Mawr. The transaction is valued at in excess of $3.6 million. Steve Cousart and Steve Kriz of CBRE represented KPG in the lease negotiations and Jeffrey Barker of Cushman & Wakefield represented the tenant.
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